The artificially fixed rupee-sterling exchange rate prescribed by the Hilton-Young Commission (1926) was adopted by the British Government for which one of the following reasons?
Aiding the flow of remittances from India and maintaining India's creditworthiness
Providing support to Indian importers
Encouraging export of cotton produce from India
Preventing depreciation of the Rupee in terms of gold
View Answer
Correct Answer: A — Aiding the flow of remittances from India and maintaining India's creditworthiness
Explanation:
The fixed rupee-sterling rate is serving British imperial financial interests. In the settled key, the accepted purpose is easing remittance flows and preserving India's creditworthiness. The other options are not the main reason behind adoption of the prescribed rate.